Palo Alto Networks reveals fiscal first quarter 2022 financial results

Palo Alto Networks has released its financial results for the first quarter of the fiscal year 2022, which ended on October 31, 2021.

“Q1 was a strong start to the fiscal year 2022, driven by strength in both our product and Next-Generation Security businesses, giving us the confidence to raise our revenue and billings guidance for the year,” said Nikesh Arora, chairman, and CEO of Palo Alto Networks. “We continue to see strong customer demand and have continued to release key innovations which give us confidence in the durable growth we presented at our September Analyst Day.”  

“The combination of strong top-line metrics, upside to our profitability goals, and cash conversion for Q1 showcase our focus on total shareholder return,” said Dipak Golechha, the chief financial officer of Palo Alto Networks.

Total revenue for the fiscal first quarter of 2022 increased by 32% year over year to $1.2 billion, compared to $946.0 million in the same quarter last year. In the fiscal first quarter of 2022, GAAP net loss was $103.6 million, or $1.06 per diluted share, compared to $92.2 million, or $0.97 per diluted share, in the fiscal first quarter of 2021.

In the fiscal first quarter of 2022, non-GAAP net income was $170.3 million, or $1.64 per diluted share, compared to $158.1 million, or $1.62 per diluted share, in the fiscal first quarter of 2021. The tables below provide a reconciliation of GAAP and non-GAAP information.

Financial Outlook

Palo Alto Networks offers recommendations based on current market conditions and forecasts.

• Total billings in the range of $1.51 billion to $1.53 billion, representing year-over-year growth of 24 percent to 26 percent for the fiscal second quarter of 2022.

• Total revenue of $1.265 billion to $1.285 billion, indicating a year-over-year increase of 24 percent to 26 percent.

• Non-GAAP diluted net income per share in the $1.63 to $1.66 range, based on outstanding 105 million to 107 million shares.

We are increasing our guidance for most KPIs for the fiscal year 2022, and we expect:

 • Total billings in the range of $6.675 billion to $6.725 billion, indicating year-over-year growth of 22 percent to 23 percent.

• Total sales in the $5.35 billion to $5.40 billion range, indicating a 26 percent to 27 percent year-over-year increase.

• Non-GAAP diluted net income per share of $7.15 to $7.25, based on 106 million to 108 million shares.

• Adjusted free cash flow margin in the 32 percent to 33 percent range.